EXPERTS OF THE ISSUE

Konstantin Y. SMOLENTSEV
Business consultant, Academician of IIA (Canada, Ottawa)

Good news for the beginning of 2011 – unity of the London and Toronto stock exchanges. This is a new chance for Siberian and Ural companies to actively enter the capacious and attractive North American market. 

The main goal of the Russian government and business in the near future should be to improve competitiveness and investment appeal of the domestic regions and companies. Venture funds, that are present in Russia, want to see actively developing perspective businesses as their partners. The priority in search for objects for investment has shifted in recent years to the regions. This gives regional authorities and companies a good chance to not only receive long term financing without collateral for a company’s stake, but primarily to obtain “smart money”, which means access to industry experience, experience of corporate development, access to the knowledge and business connections of investors in financial and investment communities. But do not be deceived only by technical innovations or the dynamics of economic indicators. Investors, first of all, estimate the potential of a team. Therefore the quality of management and organizational development must become key priorities for business owners.

In today’s environment I would recommend regional authorities and businesses to actively implement modern systems of management, move from “manual management” to management with motivating key performance indicators. A government official and businessman have to see the profit in the civilized development of his region and business. Only this approach, which does not require big financial resources by the way, is the key to sustainable development.   

National Business, March 2011